Details
- Publication date
- 11 July 2025
- Author
- Directorate-General for Financial Stability, Financial Services and Capital Markets Union
Description
The Commission has adopted targeted “quick fix” amendments to the first set of European Sustainability Reporting Standards (ESRS). This will reduce burden and increase certainty for companies that had to start reporting for financial year 2024 (commonly referred to as “wave one” companies).
According to the current ESRS, companies reporting on financial year 2024 can omit information on, amongst other things, the anticipated financial effects of certain sustainability‑related risks. The “quick fix” amendment, which applies from financial year 2025, will allow them to omit that same information for financial years 2025 and 2026.
This means wave one companies will not have to report additional information compared to financial year 2024. Moreover, for financial years 2025 and 2026, wave one companies with more than 750 employees will benefit from most of the same phase‑in provisions that currently apply to companies with up to 750 employees. You can find here a summary of the modifications.
This quick fix was necessary because wave one companies were not captured by the “stop‑the‑clock” Directive, which delayed by two years the sustainability reporting requirements for companies that report from financial year 2025 and 2026 (so‑called “wave two” and “wave three” companies). This Directive was part of the Omnibus I package adopted by the Commission at the end of February 2025.
Meanwhile, the Commission is working on a broader revision of the European Sustainability Reporting standards (ESRS), with the aim of substantially reducing the number of data requirements, clarifying provisions deemed unclear and improving consistency with other pieces of legislation. It is expected that this review will be completed by financial year 2027.
Documents
Related links
Corporate sustainability reporting
Corporate sustainability reporting - Implementing and delegated acts